By AUBREY COHEN, SEATTLEPI.COM STAFF

Published 3:39 pm, Thursday, April 3, 2014

After starting to ease in recent months, the supply of houses for sale in King County retightened in March, the Northwest Multiple Listing Service reported Thursday. The county had just 1.8 months of houses for sale at the current sales pace in March, down from 2.6 months of inventory in February.

Inventory was up from 1.6 months a year ago. But four to six months of inventory is considered balanced between buyers and sellers.

Seattle had 1.2 months of inventory, down from 1.7 months in February and 1.4 months a year earlier.

Local real estate executives blamed the scant selection for the fact that sales fell around the region, including a 2.9 percent decline in King County, although they were up 12.1 percent in Seattle. Pending sales, which don't all close but can be the best indicator of recent activity, were down 6.5 percent in Seattle and 5.2 percent countywide.

"The only thing holding back sales is the lack of inventory," John Deely, principal managing broker at Coldwell Banker Bain in Seattle, said in a listing service news release.

One recent listing drew more than 40 offers, he reported. "The depth of buyer demand appears to have no bottom in the most popular price ranges."

Mike Gain, president and CEO of Berkshire Hathaway HomeServices Northwest Real Estate in Seattle, added: "We have way more people wanting to buy than we have appropriate homes to sell in the right locations and at the right prices. Our market is literally starving for good inventory in desirable neighborhoods."

The median sales price of a King County house in March was $414,950, up 5.9 percent from a year earlier and 2.4 percent from February. The median price actually fell in Seattle, hitting $450,000, down 2.7 percent from a year earlier and 2.2 percent from February.

The median condo price was $250,000 countywide, up 11.1 percent from a year earlier and 2 percent from February. Seattle's median condo price was $285,000, down 2.6 percent from a year earlier and 11.6 percent from February. Condo prices bounce around more because a smaller number sell each month.

J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, predicted: "the shortage will persist through this year and into 2015 in price ranges where 90 percent of sales activity is occurring."

Windermere Real Estate President OB Jacobi said he expects rising apartment rents will prompt residents to look to buy.

"This leads to more demand for homes and upward pressure on prices," he said.